MORNING COFFEE

Fitch Warns of Greek and U.S. Debt Defaults. The rating agency Fitch warned Greece that it would treat a voluntary rollover of Greece's sovereign bonds in any rescue package as a default and would cut the country’s debt rating.   Greek Prime Minister George Papandreou faces a confidence vote today before he can secure support for the austerity package that is a condition for the first installment of $12 billion euros in aid. 

Fitch also said it would place the U.S. sovereign debt rating on watch negative if Congress did not raise the federal government's $14.3 trillion borrowing ceiling by August 2.  The rating agency said that if the government missed an August 15^th coupon payment it would place the U.S debt rating on restricted default.

Upgrades

Progressive (PGR): Ticonderoga raised their rating from Neutral to Buy and placed a target price of $24.00 on the company. Pre-market: 20.93 +0.39 (1.90%)

Sunpower (SPWRA): Wunderlich raised their rating from Sell to Hold and maintained their target price of $16.00 on the company. Pre-market: 18.25 +1.86 (11.35%)

Wendy’s Arby’s Group (WEN): Argus raised their rating from Sell to Hold and placed a target price of $5.40 on the company. Pre-market: 5.10 +0.07 (1.39%)

Biogen Idec (BIIB): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $106.00 to $129.00. Pre-market: 100.51 +1.91 (1.94%)

Downgrades

Gap (GPS): Cowen lowered their rating from Outperform to Neutral. Pre-market: 17.97 -0.16 (-0.88%)

Research In Motion (RIMM): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price from $70.00 to $30.00. Pre-market: 26.27 +0.38 (1.47%)

Coverage Reiterated/Price Target Changed

Apple (AAPL): Oppenheimer reiterated their Outperform rating and lowered their target price from $450.00 to $420.00. Pre-market: 317.00 +1.68 (0.53%)

Under Armour (UA): FBR Capital reiterated their Market Perform rating and raised their target price from $68.00 to $75.00.

Molycorp (MCP): Dahlman Rose reiterated their Buy rating and lowered their target price from $125.00 to $120.00. Pre-market: 53.30 +0.86 (1.64%)

Earning Reports

Walgreens (WAG): Reported EPS of $0.66 beating estimates by +$0.03. Pre-market: 42.10 -3.08 (-6.82%)

·         Futures at 8:51: Dow +0.45%. S&P +0.41%. Nasdaq +0.56%. Crude +1.17% to $94.35. Gold +0.17% to $1544.00.

·         Europe: London +0.84%. Paris +1.19%. Frankfurt +0.84%.

·         Asia: Japan +1.13% to 9459. Hong Kong +1.16% to 21850. China +0.96% to 2646. India +0.31% to 17560.